Why can't I cash my paychecks anymore?

To cash a check immediately you must have money in your account greater then the check. Bank policy

The bank that the check is drawn from must pay the check when it is presented, unless there is not enough money in the account to pay it.

If you "present" it (legalese for trying to get it cashed) to any other bank, it can decline to honor it. If you have an account at the bank, in most cases you will have to have enough in your account to cover the check if it bounces or you will have to deposit it. Banks are tightening up their practices, given the economy, because if they give you the money and the check bounces, and you cannot pay your bank back, they will have to sue you, not your employer. Banks don't like suing their customers.

It's mostly a case of fraud protection these days. With all the fancy printers and computer programs these days, almost anyone can make a real-looking check. That's how you hear about all these people that get the scams where a person overpays them for something and then wants them to send them the overpayment and the check turns out to be worthless.

Banks just want to make sure the check clears first before giving out the money.

Because the banks are going back to the safer days and ways. They will not cash a check if you don't have the balance in your account to cover it. Also, why are you cashing your paychecks instead of using the checking account to hold your money where it is safer?

You'd have to ask your bank to explain their policies. Every bank is different.

What you're describing is not unusual. A lot of banks won't cash a check for you unless you have enough money in your account to cover it.

The only way around this is to see if you can have your paychecks directly deposited. Then the money is available on payday.